Prime Minister Edi Rama has visited a wood and furniture processing plant located in Kashar, which will benefit from the latest tax reduction.
The tax on profits will drop from 15 to 5%, as a result of increasing the annual turnover threshold of up to 14 million lekë. Entrepreneurs see this reduction as an opportunity to expand activity and invest in modern technology.
“This year, from 8 million lekë, we raise profits to 14 million lekë. This gives us the opportunity to expand as a business and to add to our company's staff.
“Also that 15% tax-profit that has now become 5%, allows us to move forward as a business and employ more workers, “said the Joinery owner.
The Prime Minister said that with the increase of the annual turnover of up to 14 million lekë as a result of the decrease in the profit tax of 5%, the small business is relieved from the complications that arose out of the previous 15% tax.
“Now I believe that this going to be benefiticial for our country, because not any other country in the region has a tax system where up to $ 140,000 a year has just a 5% tax.
“We are interested in employment, because businesses will increase their investmentsto expand,” said Edi Rama.
The Prime Minister advised that good income management, in relation to employees, would be much more beneficial for entrepreneurship.
“You have to share your earnings with workers in the sense that they live in a family that produces and earns a living. They should feel like a part of the business, not just someone who comes here to work and is treated simply as any old employee, but as someone who serves as part of business' development.
“When workers feel like shareholders of the company they work for, in the participatory sense, the owner can take care of certain business aspects beyond the typical question of "what is the salary" for doing this job.
“You have people with positive energy who put in 110%,” said the Prime Minister.
The entrepreneur promised that "10% of their profits will go to salaries, to workers and to new technological machinery."